Correlation Between Smart Eye and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Smart Eye and Zwipe AS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Smart Eye and Zwipe AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Eye AB and Zwipe AS, you can compare the effects of market volatilities on Smart Eye and Zwipe AS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Smart Eye with a short position of Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Eye and Zwipe AS.
Diversification Opportunities for Smart Eye and Zwipe AS
Very weak diversification
The 3 months correlation between Smart and Zwipe is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Smart Eye AB and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS and Smart Eye is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Smart Eye AB are associated (or correlated) with Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Smart Eye i.e., Smart Eye and Zwipe AS go up and down completely randomly.
Pair Corralation between Smart Eye and Zwipe AS
Assuming the 90 days trading horizon Smart Eye AB is expected to generate 0.47 times more return on investment than Zwipe AS. However, Smart Eye AB is 2.12 times less risky than Zwipe AS. It trades about 0.01 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.02 per unit of risk. If you would invest 6,575 in Smart Eye AB on August 25, 2024 and sell it today you would lose (645.00) from holding Smart Eye AB or give up 9.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Eye AB vs. Zwipe AS
Performance |
| Timeline |
| Smart Eye AB |
| Zwipe AS |
Smart Eye and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Eye and Zwipe AS
The main advantage of trading using opposite Smart Eye and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Eye position performs unexpectedly, Zwipe AS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zwipe AS will offset losses from the drop in Zwipe AS's long position.| Smart Eye vs. Lifco AB | Smart Eye vs. Lagercrantz Group AB | Smart Eye vs. Addtech AB | Smart Eye vs. Instalco Intressenter AB |
| Zwipe AS vs. AstraZeneca PLC | Zwipe AS vs. Investor AB ser | Zwipe AS vs. Investor AB ser | Zwipe AS vs. Atlas Copco AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |